You get to work and notice that there is a weird buzz amongst the staff for this time in the morning. Not thinking too much about it, you grab a cup of coffee and head to your office.
As you settle in and start checking your emails, there it is. You learn that a customer has been injured at one of your locations and is threatening to file a lawsuit. Nightmare, right? That's why insurance was created.
For business owners, situations like this (and worse) are always hanging over the heads of business owners.
These are the “what ifs” that keep you awake at 2 AM.
What if someone gets hurt? What if one of my managers is hit with a harassment claim? What if the building catches fire? What if an employee is secretly embezzling? The list goes on.
Running a business has a lot of risks but, with a good insurance plan many of those risks that come with owning a business don’t have to come straight out of your pocket.
Now, you might be thinking, "Seven types of insurance? Really?" But trust us—after checking them out, you'll see why you need these policies to protect your business.
1. Workers’ Compensation
Let’s start with one you're probably familiar with: Workers’ Compensation. It’s required in most states and provides coverage for an employer in the case that an employee gets injured on the job. The cost of this coverage depends on the type of work your employees are doing. —think roofers versus office workers (roofers pay a lot more).
If you’re looking for more flexibility in managing costs, you might want to explore pay-as-you-go workers’ compensation insurance, which allows you to pay premiums based on your actual payroll rather than an estimate. This can help keep cash flow steady and reduce the chances of overpaying.
2. General Liability
General liability insurance protects your business from claims that might come up during regular business activities. This can include physical injuries, property damage, and even legal fees. The cost varies from business to business, depending on your unique circumstances.
Often, general liability is bundled into a Business Owners Policy (BOP), which combines this coverage with commercial property insurance.
3. Commercial Property
Speaking of commercial property, this insurance is a no-brainer. Commercial property insurance is like homeowners insurance but for your business. It covers the physical assets your business owns, like buildings, computers, and furniture.
This policy protects you from things like fires, burst pipes, vandalism, and if added to your coverage, natural disasters like floods or earthquakes.
4. Professional Liability
If your business offers professional services, professional liability insurance is a must-have. This coverage protects you from mistakes or negligence in the services you provide.
Whether it's giving bad advice, making a misrepresentation, or even slander, professional liability (also known as errors and omissions or E&O insurance) has you covered.
5. Employment Practices Liability Insurance (EPLI)
With the rise in social awareness, employee lawsuits are becoming more common. These claims could involve sexual harassment, discrimination, wrongful termination, or other employment issues.
EPLI coverage provides financial protection from the attorney and court costs associated with these lawsuits, as well as the potential judgments that can be determined.
6. Commercial Crime
Do you ever worry that an employee might steal from you? Crime insurance can help reduce that anxiety. This type of insurance protects your business from losses due to employee theft, fraud, forgery, and even some third-party crimes.
Sleep a little easier with this one in place.
7. Cyber Insurance
If your business has a digital footprint, you need cyber insurance. Data breaches, hackers, ransomware—cyber threats are real, and they can seriously hurt your business. Cyber coverage protects your business from the indirect financial loss that comes with data breaches and other types of cyber attacks. Welcome to the digital age!
Insurance is a Must-Have (for good reason)
I always equate buying insurance to buying tires for my car: I hate doing it, but I know I need them. Going to the tire shop, picking out the right tires—it’s not exactly exciting. But if something goes poorly when I’m driving, I know having the right tires on my car will help me respond to those situations appropriately.
Similarly, no one likes to go through all the insurance options but when that employee lawsuit comes up, or a customer injures themselves on your showroom floor, having the right coverage does provide a little peace of mind during a difficult time.
Insurance helps protect your business from unexpected risks, but financial protection doesn’t stop there. Having the right bank account can make a big difference in how you track expenses, manage cash flow, and keep your finances organized.
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